Flood is found to be a frequent phenomenon. Over the past few decades, Pakistan has been the home of climate-related disasters like floods. This paper attempts to examine the effect of floods on the rural communities; those are vulnerable to floods, and their livelihood patterns were damaged due to flooding events in Hazara Division. This research study assessed the causes, the impact, and the aftermath of flooding and their link with climate change in Hazara Division (Torghar, Kohistan, Mansehra, Abbottabad, and Haripur). The significance of environmental changes and flood's threats were discovered and examined through the logistic regressions and then pathway analysis. The findings showed that floods, directly and indirectly, affected the livelihood, social standing, and physical and economic status of rural communities. Rise in poverty level is also reported in already vulnerable communities that further increase their exposure to risks and hazards. This study calls for local government strengthening, early warning systems, and (non)financial assistance in times of needs to minimize the floods risk and disastrous impacts on localities and resources.